This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

CALGARY—Calgarians are just two months away from a vote on whether they support a bid for the 2026 Winter Olympics, but experts say the group tasked with drafting a hosting plan still has questions to answer.

The Calgary Olympic Bid Corporation presented its proposed hosting plan to city council on Tuesday, and city councillors voted 12-3 in favour of proceeding to a plebiscite on Nov. 13.

The BidCo says hosting the 2026 Winter Olympics in Calgary would cost a total of $5.23 billion, with municipal, provincial and federal governments on the hook for $3 billion. (Jeff McIntosh / The Canadian Press)

The BidCo says hosting the Games in Calgary would cost a total of $5.23 billion, with municipal, provincial and federal governments on the hook for $3 billion. How that cost would be split is still unclear.

BidCo CEO Mary Moran also emphasized the opportunities hosting the Olympics for a second time could bring Calgary, estimating the Games would bring $7.4 billion in various economic benefits.

Moran said the Games are “a means to an end” for Calgary to reap those benefits.

Article Continued Below

University of Alberta social sciences professor Stacy Lorenz, a sports historian who teaches a course on the modern Olympics, said Calgarians should approach that idea with caution.

“The history of (the Olympics) is costs are consistently underestimated, benefits are consistently overstated and the net economic impact from previous Games is either negative or it’s very modest in terms of a positive,” he said.

“If you’re wanting to support this because it’s going to be a massive economic boost, you’re mistaken. I don’t think there’s enough evidence,” he said.

Lorenz said some research suggests that mid-sized cities like Calgary might be in a better position to find gains from hosting the Olympics than large centres like London or Los Angeles, but it’s hard to put a tangible number on any future benefits.

University of Calgary economist Trevor Tombe said he takes issue with the lack of detail the BidCo offered on how it arrived at its claims about the economic benefits of the Olympics.

“When they present economic benefits of $7.4 billion, they are implicitly claiming that the economic benefits are larger than the economic costs, and that really distorts the debate,” he said. “But we shouldn’t take a number seriously unless they show their work.”

Tombe also questioned the BidCo’s presentation of how the Olympics would create GDP gains, and said he wants to see more information about the organization’s economic benefit analysis.

“The ability for the Olympics to contribute to the economic recovery is an oft-cited reason to bid. Without a proper cost-benefit analysis, it’s hard for Calgarians to evaluate those economic considerations.”

Tombe added that the estimated security costs of $610 million are almost guaranteed to go up, and in general, Calgarians should view the BidCo numbers as a ballpark, given that the Olympics are still eight years out.

“We should approach these numbers knowing there is a large margin of error around them.”

Concordia University economist Moshe Lander said the total cost presented by BidCo is “probably a best-case scenario,” and a more responsible approach, in his view, would have been to present a range of numbers.

“What happens if those numbers are wrong? Who’s responsible? Everyone’s playing a game right now of throwing out numbers and hoping people are satisfied,” he said.

Lander doesn’t support the bid for Calgary because he doesn’t think there’s a good economic case behind it. He added that while tourism will increase during the Games, BidCo didn’t take into account possible negatives, such as tourists who might typically come to the mountains choosing to stay away during the busy Olympics.

Lorenz said a plebiscite could very well be decided based on “intangible” ideas about the Olympics, like bringing civic pride to Calgary and showcasing Canada on a world stage. But despite some questions he had about the BidCo’s proposal, he said it looked like a conservative and “thoughtful” bid from a financial perspective.

“It is a very modest facilities and infrastructure budget, which I think they may have gotten the message that we can’t do a high-cost, ‘let’s build all these new facilities’ type of Games.”

With a file from The Canadian Press

Madeline Smith is a reporter/photographer with StarMetro Calgary. Follow her on Twitter: @meksmith

More from The Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com